The Great British Pubco Scam. Pubs are closing all over Britain yet pubs are places that most people love and think fondly of as some of the most significant, treasured, iconic parts of our culture, places to be cherished, nurtured and looked after. Yet they're closing everywhere... WHY? It doesn't make sense does it? Read on...
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Saturday, May 14, 2011

RE: MPs to re-open pubco inquiry

They'd rather keep Rob May in the office because he's prone to Foot In Mouth disease; eh?

The inquiry could go either way - for or against the lessees.

The tie's been ripping off the industry for decades. It's long overdue for it to be removed to enable a free market to flourish where, once the middlemen leaches quietly sucking all the profit are removed, there will be investment in sustaining the fabric again and a flourishing industry will emerge; far too long overdue.

It might be worth pointing out the blindingly obvious to the committee: that the industry is imploding and provide the publicly reported evidence; give them quotes from press releases of all the major pubcos which essentially admit that none of the tied estates are sustainable.

One way or another, as far as I can see, every pubco that's followed the big six's model of strip mining pubs for every last bean until they are shut forever, and calling it churn in a market that is overpubbed, are either dismantling or abandoning their estates altogether because the leased model is not working because it's been bled dry.

The pubcos will argue that it's all because of the usual deceits; duty, supermarket competition, red tape, smoking ban, demographic change, stupid lessees, stupid customers changing their habits and nothing to do with charging tenants double for beer and whacky rentals but their arguments cannot get away from the fact that they have become allergic to the business model they created while they made massive profits - and to the fact that they've got shed loads of debt lying around from the gravy train years which they haven't a hope in hell of ever repaying; Rather a bit like the situation they forced their tenants into which was the bedrock they mined - making profit out of nothing - in creating the basis of the tied pubco model... ironies abound in this pack of cards that's full of jokers.

Just look at the illustration heading this article then consider what's happened to each of the pubcos in turn. You have the answer - the tied estates of each one have substantially failed one way or another and in each case it's that their individual pubs are not generating returns. Compare that with the performance of all the estates that are not tied, no matter how they are operated - and they are NOT failing - while they are trading in the exactly the same market conditions. What is the difference? Smoking ban? Supermarket competition? Demographic change? Duty? Red tape? Beer prices? Rent? The Tie?

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J Mark Dodds

I’m one of the Pub Persuaders, one of the Pub Professionals, one of the People who knows what’s going on – in PUBS that is - and this blog is about pubs, why they are so important to people and why they must be preserved, reinvigorated, enhanced and remade fit for purpose for the 21st century and beyond and how they must be made sustainable so that future generations can enjoy and learn from the rich seams of knowledge that can be found on everyone’s doorstep in every humble pub – until it’s closed forever – until it’s too late and people say ‘what happened to our pub? We really NEEDED that pub!’
I’m a publican, parent and photographer with a lot of food and drink experience in some of the busiest restaurants and clubs in Britain. Since long before 2008 (when I co-founded the Fair Pint Campaign) I’ve been a pro pubs, people and places person at the forefront of the national conversation about why pubs are closing… everywhere.
I love good pubs, my kids love good pubs, all my friends love good pubs – everyone loves good pubs and I’m determined to make sure good pubs remain part of everybody’s experience - of growing up in the UK and of visiting this country.